Palmer is a 50 percent shareholder in Gulf Corporation, an S corporation. The S corporation had an $80,000 ordinary loss last year and $10,000 of ordinary income this year. Before accounting for last year's losses, Palmers basis in his Gulf stock is $32,000. In addition, Gulf Corp. owed Palmer $6,000 and had $100,000 of other liabilities owed to creditors at the end of last year. What income and loss must Palmer report on his current year return as a result of owning the Gulf stock (ignoring the at-risk and passive activity limitations)? What is his ending stock and debt basis at the end of last year and at the end of the current year?